Hi, thanks for your reply 🙏
Here's some more details about my situation:
- I am living abroad in Thailand
- W2 is from my US employer (so not a Thailand company)
- My business income is also from the US, and I am a sole-proprietor
I consulted a BrightTax CPA and he said that the business deductions need to be on line 44.
"This is how the IRS would like the calculation completed. The current year foreign expenses that are allocated to excluded foreign earned income must be considered. Even though the W-2 wages are theoretically matching the total foreign earned income exclusion, the business income and therefore the business expenses would also need to be considered for the deductions allocable to excluded earned income (Line 44)."
So I guess ChatGPT was wrong and I have to reduce my FEIE by the business deductions on line 44
